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A corporation issues a one-year, 5% coupon bond, paying $100 at maturity. The bond is risky, and sells at a price P=$92. The risk-free interest

A corporation issues a one-year, 5% coupon bond, paying $100 at maturity. The bond is risky, and sells at a price P=$92. The risk-free interest rate is 5%. Find the risk (or, default) premium on this bond.

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